FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

ELLIS GORDON LLOYD
2. Issuer Name and Ticker or Trading Symbol

INTERNATIONAL ABSORBENTS INC [ IAX ]
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

__ X __ Director                      _____ 10% Owner
__ X __ Officer (give title below)      _____ Other (specify below)
CEO, President
(Last)          (First)          (Middle)

C/O INTERNATIONAL ABSORBENTS INC., 1569 DEMPSEY ROAD
3. Date of Earliest Transaction (MM/DD/YYYY)

9/17/2008
(Street)

NORTH VANCOUVER, A1 V7K 1S8
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Options   $3.55   9/17/2008        28170         (1) 9/17/2015   Common Stock   28170   $0   128170   D    
Performance Vesting - Restricted Stock Unit     (2) 9/17/2008        9390         (3)   (4) Common Shares   9390   $0   137560   D    
Performance Vesting - Restricted Stock Units     (2) 9/17/2008        9390         (5)   (4) Common Stock   9390   $0   146950   D    

Explanation of Responses:
( 1)  Vests in 5 equal installments on September 17, 2009 to 2013.
( 2)  Converts into common shares on a one-for-one basis
( 3)  4,695 of the units vest upon release of fiscal year 2010 results and 4,695 vests upon release of fiscal year 2011 results, subject to the company's attainment of pre-established financial performance goals, otherwise the units are forfeited.
( 4)  Not Applicable
( 5)  Up to 9,390 units of this award will vest one full year after the release of fiscal year 2009 results, subject to the Company's attainment of pre-established financial performance goals, otherwsie these units are forfeited.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
ELLIS GORDON LLOYD
C/O INTERNATIONAL ABSORBENTS INC.
1569 DEMPSEY ROAD
NORTH VANCOUVER, A1 V7K 1S8
X
CEO, President

Signatures
/s/ Gordon Ellis 9/19/2008
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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